CBO: Obama Jobs Act Would Increase 2012 Deficit by $288 Billion
4:30 PM, Oct 7, 2011 • By JOHN MCCORMACK
The Congressional Budget Office reports that the "American Jobs Act" would make the federal deficit jump $288 billion in 2012. In other words, the 2012 deficit would rise by about twenty-five percent--from $1.2 trillion to $1.5 trillion. The most recent budget fight between Republicans and Democrats resulted in just a $22 billion cut to the 2012 deficit.
The CBO predicts that over 10 years the American Jobs Act would raise enough taxes to pay for the short-term stimulus:
Congressional Republicans jumped on the new report to criticize the Democrats "spend now, pay later" approach. "So massive spending and deficits for a temporary stimulus bill now, paid for with a permanent tax hike," Minority Leader Mitch McConnell's spokesman Don Stewart wrote in an email to reporters.